Gold hits 3-wk high; keeps traders at bay

Gold extended gains for a fourth day on Wednesday to hit its highest level in three weeks, keeping traders on the sidelines, awaiting better bargains even as the wedding season neared its end, dealers and traders said.

At 2:01pm, the most-active gold for January delivery on the Multi Commodity Exchange (MCX) was trading 0.18% higher at 20,746 rupees per 10 grams, after hitting a high of 20,778 rupees, a level last seen on Dec. 7.

"Bookings are very thin as rates have gone up, and we are nearing the year-end. There is no occassion to buy as well," said a dealer with a state-run bullion importing bank.

"Markets could start in full swing in January," said a private bank dealer.

However, a stronger rupee kept the upside in prices restricted, they added.

Rupee reversed early losses and edged marginally higher tracking gains in the local sharemarket and the dollar's losses versus majors, but month-end demand from importers limited any further uptick.

India's gold buying is expected to restart in mid-January, when harvesting festivals are slated.